Nepal awards hydropower project to a Chinese company

Nepal has revived a deal with China’s state-owned firm Gezhouba Group Corporation, to construct the 1.2 GW Budhi Gandaki Hydropower Project in the country at an approximate cost of $2.5 billion. The project had earlier been scrapped by the previous government. Following the new government’s decision, Nepal’s energy ministry will now invite the Chinese company to prepare a draft of the MoU. Reportedly, the project will be executed under the engineering, procurement, construction and financing model. Over 8,000 households are expected to be affected by the project’s construction; however, the power generated will help the country bridge its current demand-supply gap.